WASHINGTON â€” The US Army has said it had awarded nearly $900 million in contracts to British arms manufacturer BAE Systems and US firm General Dynamics to develop its next-generation ground combat vehicle.

The Pentagon said it had given $450 million to BAE and $440 million to General Dynamics to develop “competitive, affordable and executable designs for a new Army Infantry Fighting Vehicle (IFV)” over the next two years.

The vehicle, which is expected to be able to transport nine infantrymen, is due to be operational by 2018, replacing the aging Bradleys and Strykers, it said in a statement.

The Pentagon, whose budget has doubled since the September 11, 2001 attacks, is bracing for drastic cuts in the coming years as the United States attempts to rein in the spiraling deficit.